US $765 million loan stopped, Kodak giants transformation twists and turns

category:Finance
 US $765 million loan stopped, Kodak giants transformation twists and turns


US Senator Elizabeth Warren believes that executives are involved in insider trading by buying shares before major news is announced. Without prior public disclosure, Kodak executives transactions are likely to involve insider trading by one or more people, or disclose material non-public information about loans related to the defense production act without authorization, Warren wrote to the sec

At present, Kodak has appointed independent directors of the board of directors to set up a special group to conduct internal review on suspected insider trading of senior executives. Kodaks share price fell 32% in the past five trading days due to the news of loan shelving.

This loan is also the first loan in this field since the outbreak of the new crown, after the entry into force of the US defense production act. According to trumps original plan, Kodak will turn to produce a variety of generic pharmaceutical raw materials including hydroxychloroquine in the future.

At present, most of the API in the United States comes from China and India. In order to get rid of import dependence, the U.S. government is locking in the domestic supply chain of pharmaceutical raw materials.

However, opponents questioned that the loan appeared to be a creative attempt by trump to revive the old American industrial enterprises, but in fact, trump was using an unsettled loan intention to raise Kodaks share price and benefit his cronies.

Kodak CEO kontanza said that Kodak is a chemical giant and advanced materials company with a history of 100 years, and has natural advantages in the production of raw materials and drugs.

For the United States, the benefit of providing loans to Kodak is to reduce dependence on APIs in China and other countries, and we dont want to be controlled by the epidemic, said Adam Boehler, head of the International Development Finance Corporation. Foreign entities could subvert U.S. access to drugs and pharmaceutical products.

However, it is still difficult for the United States to get rid of Chinas supply chain. According to the FDA data, 72% of manufacturers producing active pharmaceutical ingredients for U.S. drugs are outside the United States, and 13% of them are in China. S & P recently issued a report to the first financial reporter, pointing out: the United States calls for cutting off Chinas supply chain, but enterprises have few alternative options. The US industry is rethinking their supply chain strategy, but it is difficult to move out of China on a large scale, S & P told CFI. In fact, the global supply chain is constantly merging, forming a huge network of interconnected. Rebuilding the supply chain and ecosystem is not something that can be done overnight. It requires quality control and logistics organization, and expensive time and capital costs. Source: editor in charge of Finance and Economics: Zhong Qiming_ NF5619

However, it is still difficult for the United States to get rid of Chinas supply chain. According to the FDA data, 72% of manufacturers producing active pharmaceutical ingredients for U.S. drugs are outside the United States, and 13% of them are in China.

S & P recently issued a report to the first financial reporter, pointing out: the United States calls for cutting off Chinas supply chain, but enterprises have few alternative options.

The US industry is rethinking their supply chain strategy, but it is difficult to move out of China on a large scale, S & P told CFI. In fact, the global supply chain is constantly merging, forming a huge network of interconnected. Rebuilding the supply chain and ecosystem is not something that can be done overnight. It requires quality control and logistics organization, and expensive time and capital costs.